PUTERA Kitchen Furniture produces modern kitchen to meet domestic market demands. It has

Three production departments: A, B, and C, and one manufacturing support department (MSD).

The service department overhead should be reapportioned based on machine hours. The

budgeted overheads and other costs for the year ending 31 December 2018 are as follows:

Indirect wages:	A	5,000
	B	7,000
	C	22,000
	MSD	9,200
Other costs:
Consumable materials		24,000
Insurance Plant		9,600
Production supervision		55,000
Plant depreciation		20,000
Distribution costs		11,000
Lighting and heating		32,000
Horse Power		43,000
Rent		8,500

Additional Information:

	A	B	C	Manufacturing Support Department
Floor area	24000	20000	10000	8000 800
Plant book value (RM000)	RM20	RM16	RM10	RM3
Horse power	150	30	10	5
No of store requisitions	100	80	60	-
Direct labor hours	63000	98000	51000
Labor rate per hour	4	3.5	3
Machine hours	85000	55000	30000

REQUIRED:

(a)Prepare the overhead analysis statement showing clearly the allocation and basis of apportionment

(b) Calculate the overhead absorption rate (to the 2 decimal points) for all three production- departments.

Answers must be handwritten and show all the workings.